1. Purpose of This Document
This set of slides is intended to provide community foundations with a template for presenting the findings of their activity-based costing analysis
Foundations can use any or all of these slides as appropriate
To use these slides, foundations must:
Enter the results of their activity-based costing analysis in relevant slides
Update the peer foundation data on appropriate slides based on current benchmarking data available on the CF Insights database ( (NOTE: this data is available to members of CF Insights only)
Need help analyzing the data or putting together presentation materials? Contact for information on pricing.
Helpful Tips when deciding what to include/exclude :
Who is your audience? A Finance Committee may want the nitty gritty details on all products while the Board may be more interested in very high level findings and a few key recommendations.
Where can you drill down?
Determine key decisions your foundation is considering. For instance, are you looking to evaluate the viability of certain products? Do you want to consider investing further in certain areas?
Was there anything that surprised you? For instance, did you expect DAFs would be generating a big surplus, but the foundation is subsidizing them? How do the data explain the results (perhaps the effective fee and/or average fund size are low)?
Where would peer comparison data be helpful?
The CF Insights database can help put some of your data into context (note that not all data sampled here is available for all community foundations). Contact for assistance.
© CF Insights 2018

2. Activity-Based Costing Analysis Presentation of Results
COMMUNITY FOUNDATION NAME DATE

3. Agenda Methodology Sample Slides for Overview and High-Level Findings
Sample Slides for Peer Data
Sample Slides for Discussion
© CF Insights 2018

4. Community Foundations Can Build Transparency Into the Costs and Revenues Associated with their Products by Asking New Questions
How much cost is associated with each Foundation product?
Which products make money and which do we subsidize?
Are our subsidies consistent with our mission and strategic priorities?
What determines cost for each of our products?
Activity-Based Costing can help you determine answers to these questions
© CF Insights 2018

5. Methodology
Activity-Based Costing enables the foundation to better understand the true costs and revenues of its products and services
Expense 1
Expense 2
Expense 3
Expense 4
Costs are
assigned
to activities…
Activity 1
Activity 2
Activity 3
…then allocated
based on utilization
of activities
Product 1
Product 2
First, products are identified and defined, then cost data is gathered and traced to specific activities before being allocated to products or services based on their utilization of activities
© CF Insights 2018

6. Community Leadership and Services
Methodology
100% of the foundation’s staff costs and other expenses are assigned to a matrix of activities and products
Staff Costs
DAF
Discretionary
Scholarships
Agency
Fee for Service
Planned Giving
Supporting Orgs.
Initiatives
Community Leadership and Services …
Acquiring or Establishing a New Fund or Gift $
Sub-activity A
Sub-activity B
Maintaining Funds
Making Grants
Providing Non-Grant Services to the Community
Other Staff Activities
Up to 16 Products
>100 Activities
Staff costs are assigned to activities and products based on reported time, weighted by the total compensation by each individual
© CF Insights 2018

7. Methodology - Products Used in the Analysis
Description
Unrestricted
Funds that meet community needs as they arise through the Foundation’s Grants Program and are typically held in perpetuity, producing an annual income
Field of Interest
Funds allowing donors to support a broad area of concern
Designated
Funds created to ensure ongoing assistance to specific non-profit and charitable organizations, monitored to ensure that they fulfill purposes that donors intended to support
Geographic Affiliates
Specific fund names
Agency Funds
Endowment funds established by individual non-profit organizations to be held and managed by the CF. The CF makes regular reports and distributions to the organization.
Scholarship
Funds providing an annual income to be distributed in the form of scholarships
Donor Advised Funds / Endowed
Funds held by the CF where the donor has specified that the fund’s income or assets be used for the benefit of one or more specific public charities or areas of interest, subject to spending policy
Donor Advised Funds/
Non-Endowed
Funds held by the CF where the donor has specified that the fund’s income or assets be used for the benefit of one or more specific public charities or areas of interest
Fee for Service
Funds which require a significantly customized set of services, including committee work, event planning
Supporting Orgs.
Fiscal Sponsorships
Other
Special Initiatives
Specific Initiative names
Community Leadership
Activities specific to each foundation, typically resulting from its mission driven priorities. Examples include: activities that support the growth of philanthropy in the community, providing technical assistance to non-profits, convening funders through grant writing workshops and local presentations.
Planned Giving
Charitable trusts including Charitable Remainder Trusts and Charitable Lead Trusts
Fundraising for Operations
Fundraising activities to support the foundation's operations.
Sample product list and definitions - Update to include your products and product definitions
© CF Insights 2018

8. Agenda Methodology Sample Slides for Overview and High-Level Findings
Sample Slides for Peer Data
Sample Slides for Discussion
© CF Insights 2018

9. Update with your products and data
High Level Findings
% of Total Assets, Revenues and Costs by Product
Update with your products and data
© CF Insights 2018

10. Update with your products and data
High Level Findings
Costs and Revenues by Product Category
Update with your products and data
© CF Insights 2018

11. 2011 Surplus/Subsidy/Investment by Product ($k) Operating Budget Only
High Level Findings
Costs and Revenues by Product Category
2011 Surplus/Subsidy/Investment by Product ($k) Operating Budget Only
Surplus
Subsidy
Investment
Cross-subsidizing is not unusual in a community foundation business model and it is important to be intentional about where investments are made
© CF Insights 2018

12. High Level Findings
A NUMBER OF INTERRELATED FACTORS INFLUENCE THE SUSTAINABILITY OF THE PRODUCTS PROVIDED BY COMMUNITY FOUNDATIONS
Number of products, and asset concentration in each product
Degree of customization allowed or encouraged by the Foundation
Endowment or grantmaking emphasis of each fund - or rate of pass through
Average fund size in each product category
Pricing discounts from published pricing and matching pricing to underlying cost drivers
Revenue diversification beyond asset-based fees
© CF Insights 2018

13. Total Surplus Generated
High Level Findings
Details for Products That Generate a Surplus
Surplus Products
Product 1
Product 2
Product 3
Product 4
Product 5
Total Surplus Generated
Total Assets
% of Assets
% Total Revenues
% Total Costs
Average Fund Size
Breakeven Fund Size
Breakeven Fee
(Costs as % Assets)
Effective Fee
(Revenue as % Assets)
Update with data from your products that generate a surplus
© CF Insights 2018

14. Total Surplus Generated
High Level Findings
Details for Products That Require a Subsidy/Investment
Product Investments
Product 1
Product 2
Product 3
Product 4
Product 5
Product 6
Product 7
Product 8
Total Surplus Generated
Total Assets
% of Assets
% Total Revenues
% Total Costs
Average Fund Size
Breakeven Fund Size
Breakeven Fee
(Costs as % Assets)
Effective Fee
(Revenue as % Assets)
Update with data from your products that generate a surplus
© CF Insights 2018

15. Agenda Methodology Sample Slides for Overview and High-Level Findings
Sample Slides for Peer Data
Sample Slides for Discussion
© CF Insights 2018

16. Peer Data Can Help Put Your Foundation’s Findings Into Context
Sample Peer Comparison Data
Peer Data Can Help Put Your Foundation’s Findings Into Context
Members of CF Insights can access a variety of financial and operating metrics for hundreds of peer community foundations at including details on:
Assets, Gifts, and Grants
Product Mix
Staffing
Operating Expenses
Geographic Indicators
Additionally, numerous community foundations have completed the Activity-Based Costing analysis. Surplus/Subsidy and cost data by product for these foundations can also be accessed at
Need assistance accessing the data or looking for more detailed Activity-Based Costing data from peers? Contact
We’ve included some sample slides in this section that may help you assess your performance in comparison to peers. This is not an exhaustive representation of all the data available to members!
Interested in learning about the benefits of becoming a CF Insights member? Contact or visit
© CF Insights 2018

17. Sample Peer Comparison Data
Assets by Product Among Peers
CF Insights members can access this data in the CF Insights Database
© CF Insights 2018

18. CF Insights members can access this data in the CF Insights Database
Sample Peer Comparison Data
Percent of Total cost by Product Among Peers
CF Insights members can access this data in the CF Insights Database
© CF Insights 2018

19. CF Insights members can access this data in the CF Insights Database
Sample Peer Comparison Data
Total Surplus/Subsidy - DAFs
Sample CF
Peer 1
Peer 2
Peer 3
Peer 4
CF Insights members can access this data in the CF Insights Database
© CF Insights 2018

20. CF Insights members can access this data in the CF Insights Database
Sample Peer Comparison Data
Operating Budget
Total Asset Size ($M)
$140
$52
$91
$97
$103
CF Insights members can access this data in the CF Insights Database
© CF Insights 2018

21. Costs as % of Assets (Breakeven Fee for Products)
Sample Peer Comparison Data
Costs as % of Assets (Breakeven Fee for Products)
Costs as % of Assets
Would this data be helpful to you? Contact for access
© CF Insights 2018

22. Costs as % of Assets (Breakeven Fee for Products)
Sample Peer Comparison Data
Costs as % of Assets (Breakeven Fee for Products)
Revenue as % of Assets
Would this data be helpful to you? Contact for access
© CF Insights 2018

23. Sample Peer Comparison Data
Revenue Mix
Would this data be helpful to you? Contact for access
© CF Insights 2018

24. Sample Peer Comparison Data
Leadership Funding
Percent of Total Revenue for Leadership
Would this data be helpful to you? Contact for access
© CF Insights 2018

25. Agenda Methodology Sample Slides for Overview and High-Level Findings
Sample Slides for Peer Data
Sample Slides for Discussion
© CF Insights 2018

26. Discussion Tool
Informed by a New Set of Facts, the Foundation Can Engage in Productive Board/Staff Dialogue and Make Intentional Strategic Choices
Questions
Are our operations aligned with our mission and strategy?
To improve sustainability, achieve impact, and promote philanthropy going forward, what changes should we make in our:
Product portfolio?
Processes?
Policies?
Pricing?
Revenue sources?
How do we prioritize investment of resources?
Which fee based products will we subsidize, if any?
How should we trade off subsidizing certain fee-based products versus community leadership activities?
How do we develop and evaluate new product/service introductions?
© CF Insights 2018

27. Discussion Tool
Before Determining Changes To Make Based on This Data, the Foundation Should Step Back and Consider Its Strategy
What are
our strategic priorities?
What mix of products and services aligns with our strategic priorities?
How do we position priority products for growth?
What operational changes do we make by product:
Price
Policy
Processes
Revenue sources
This business model analysis provides key information on product sustainability and opportunities for change
Before determining any changes to product fees, costs or policies, however, the Foundation must step back and review how each product plays a role in achieving its strategic priorities
© CF Insights 2018

28. Strategy Should Guide Prioritization and Adjustment of Products
Discussion Tool
Strategy Should Guide Prioritization and Adjustment of Products
Product
Emphasis
Revenue
Adjustments
Opportunities to Reduce/
Redirect Costs
Fee Based
Products
Unrestricted
Field of Interest
Designated
Geographic Affiliates
Agency Funds
Scholarship
Donor Advised Funds / Endowed
Donor Advised Funds/
Non-Endowed
Fee for Service
Planned Giving
Fundraising Funds
Supporting Orgs.
Leadership
Initiatives
Community Leadership
Update with your Products
© CF Insights 2018

29. SHARING KNOWLEDGE. GROWING IMPACT.
Questions?
David Rosado
Member Services Manager
(212)
SHARING KNOWLEDGE. GROWING IMPACT.
© CF Insights 2018